Piper Sandler on Tesla’s EV Market Share: ‘Yes, it’s still rising’

by Eva Fox March 13, 2021

Piper Sandler on Tesla’s EV Market Share: ‘Yes, it’s still rising’

Photo: DDCAR

Quarter after quarter, year after year, there are persistent reports that Tesla's (NASDAQ: TSLA) market share has begun to decline. However, anyone familiar with the company's delivery system is perfectly calm about this. Since the bulk of the company's cars are manufactured in the USA, it takes time to deliver the vehicle, which can ultimately create misperceptions or be used to create negative coloring for Tesla's success in development.

To once again dispel doubts, Piper Sandler posted a note to customers titled “Some comments regarding Tesla’s market share (yes, it’s still rising).” Analysts at the firm said they receive questions every quarter about Tesla's apparent market share decline. In response to them, Piper Sandler wrote that "these concerns are off the mark" and once again clarified the essence of what is happening.

The firm said that this impression can be created due to the limited global capacity of the company, as well as Tesla's tendency to "batch" international shipments. Analysts cited regions where Tesla does not have a factory, such as Europe, and pointed out that the number of company registrations skyrocket shortly after imported cars arrive at the shipyard. Obviously, if in a certain month the ships do not arrive at European ports, then Tesla's deliveries will be reduced. This is why Piper Sandler recommends that investors study the company's market share on a three-month basis.



In addition, analysts point out that when looking at market share, it is natural to compare Tesla's volume to all other electric vehicle shipments. But since many brands have yet to begin selling EVs, Tesla's share of EV sales will almost always decline—especially in the United States—whenever competing EVs are launched. "But this is meaningless; Tesla's share of overall vehicles is still rising," analysts wrote.

© 2021, Eva Fox. All rights reserved.

_____________________________

We appreciate your readership! Please share your thoughts in the comment section below.

Article edited by @SmokeyShorts, you can follow him on Twitter






Previous  / Next